[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Notices]
[Pages 66196-66199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27527]


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DEPARTMENT OF TRANSPORTATION

Bureau of Transportation Statistics

[Docket BTS-2001-10909]


Agency Information Collection Activities Under OMB Review: OMB 
No. 2139-0002 and 2139-0004 (Financial and Operating Statistics for 
Motor Carriers of Property)

AGENCY: Bureau of Transportation Statistics (BTS), DOT.

ACTION: Notice of final disposition.

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SUMMARY: BTS has submitted the following two Information Collection 
Requests (ICRs) described in this notice to the Office of Management 
and Budget (OMB) for review and approval as required under the 
Paperwork Reduction Act of 1995 (PRA), Pub. L. 104-13. The agency has 
issued two previous Federal Register notices on related PRA burden 
estimates. BTS has received additional public comments on the related 
burden estimates for motor carriers of property (Class I and Class II) 
subject to BTS regulations, and OMB has asked the agency to conduct a 
reevaluation of the ICRs and the related burden estimates. Therefore, 
based on comments received to BTS Docket 10909, BTS is providing a 
summary of its reevaluation and analysis of the original burden 
estimates for each ICR and is requesting an extension from OMB through 
May 31, 2005. The current OMB approval expires on May 31, 2003, for 
each form.

DATES: Comments must be submitted on or before November 29, 2002.

ADDRESSES: Send comments to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, NW., Room 10202, Washington, DC 20502, ATTN: Desk Officer for 
the Bureau of Transportation Statistics. Comments should identify the 
docket number and be submitted in duplicate. OMB requests comments by 
November 29, 2002, to process the ICR expeditiously.

FOR FURTHER INFORMATION CONTACT: Paula R. Robinson, Compliance Program 
Manager, Office of Motor Carrier Information, K-13, Bureau of 
Transportation Statistics, 400 Seventh Street, SW., Washington, DC 
20590-0001; (202) 366-2984; fax: (202) 366-3364; e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:
    Title: Financial and Operating Statistics for Motor Carriers of 
Property.
    OMB Approval Numbers: 2139-0002 (Form QFR) and 2139-0004 (Form M).
    The Financial and Operating Statistics (F&OS) for Motor Carriers of 
Property is a collection of annual and quarterly financial and 
operating statistics data from the motor carrier community. The 
regulations require motor carriers of property with annual revenues of 
$3 million or more to file annual reports, and carriers with annual 
revenues of $10 million or more to file quarterly reports with BTS, as 
required by 49 CFR 1420, Reports of Motor Carriers. The agency ensures 
that the data and information collected are made publicly available as 
mandated by Congress (49 U.S.C. 14123).
    In accordance with OMB regulations (5 CFR part 1320), each agency 
that is renewing an information collection activity must notify the 
public of its intention to renew the collection activity, provide an 
opportunity for public comment, and notify the public when the agency 
has sent its information clearance package to OMB.

[[Page 66197]]

Under the PRA (44 U.S.C. 3501-3520), Federal agencies must obtain 
approval from OMB for each information collection they conduct or 
sponsor. BTS solicited public comment on November 5, 2001, on the 
information collection requirements for OMB 2139-0002 (Form QFR) and 
OMB 2139-0004 (Form M) contained in BTS regulations, Reports for Motor 
Carriers (66 FR 55981). The notice received three comments to the 
docket from the Central Analysis Bureau (CAB), International 
Brotherhood of Teamsters, and Inland Marine Underwriters Association. 
Pursuant to OMB requirements, a second notice was published on March 5, 
2002, (67 FR 10043), allowing a 30-day comment period. BTS received 18 
additional comments to the docket, some after the comment period closed 
on April 4, 2002.
    Sixteen motor carriers, one government agency, and one private 
insurance organization provided additional comments to the docket. The 
motor carriers were All-Pro Transport, Inc.; Burns Motor Freight, Inc.; 
Daggett Truck Line, Inc.; Falcon Transport, Inc.; Fikes Truck Line, 
Inc.; Howell's Motor Freight, Inc.; Market Transport Ltd.; New Country, 
Inc.; Olson Carriers, Inc.; Paschall Truck Lines, Inc.; PFT Transport, 
Inc.; Pioneer Transport, Inc.; RJW Transport, Inc.; Stagecoach Cartage 
and Distribution, Inc.; USA Truck, Inc.; and Witte Bros. Exchange, Inc. 
The carriers' comments were virtually identical (similar to form 
letters) and each opposed the agency's data collection program. CAB and 
the U.S. Department of Commerce's Bureau of Economic Analysis (BEA) 
provided comments supporting the program. CAB included supplemental 
information to comments previously submitted to this docket. All 
comments have been considered and included as part of the agency's 
overall reevaluation of the financial reporting requirements for motor 
carriers of property (Class I and Class II).
    On May 13, 2002, OMB approved a provisional clearance for BTS 
information collection requests for one year and instructed the agency 
to address concerns expressed by commenters to the previous ICRs. OMB 
requested that the agency publish a notice containing any revised 
estimates of the burden hours required to comply with the ICR. BTS is 
requesting OMB's approval to extend the existing ICR expiration (May 
2003) so the data collection instrument may continue being used by 
motor carriers to report their annual and quarterly financial and 
operating data. This effort will ensure that decision-making of Federal 
and private agencies and research activities throughout government, 
businesses, and academia will continue with benefit to the public. 
Approval of this request will allow the forms to remain effective for a 
3-year period, until May 31, 2005. The results of the agency's 
reevaluation and analysis are described below.
    This notice summarizes the results of the reevaluation and 
establishes a public comment period of 30 days from the date of 
publication in the Federal Register. The agency is requesting that the 
OMB extend the 1-year approval to 3 years once it has conducted a 
review of the agency's information collection requests. All public 
comments to the agency's reevaluation and analysis should be sent to 
OMB at the address shown in the ADDRESSES section above.

Discussion of Comments

    BTS has considered the comments to the docket and believes that the 
F&OS data and associated information serve a useful purpose for many 
users engaged in analytical and decision-making activities. The users 
include trucking companies, insurance companies, trade associations and 
labor organizations, academics, and Federal agencies where trucking 
industry policy is evaluated and formed, and others that rely on motor 
carrier statistics to carry out their mandated statistical programs 
(e.g., Department of Commerce's Bureau of Economic Analysis). Within 
these sectors, researchers and analysts benchmark expenses \1\ of 
individual trucking companies; investment analysts provide advice to 
clients based on industry trends; trade associations and journals use 
the F&OS data as the basis for analyses on the current economic status 
of trucking (which itself is used as an indicator of change in economic 
conditions); and government agencies conduct analysis of F&OS data to 
anticipate shifts in industry economics and to support policymaking 
decisions. Trucking company comments assert that the data collected 
serve no useful purpose. BTS disagrees with that view and invites all 
users and interested parties to provide BTS with detailed information 
about the various ways the data are used and the importance of the data 
to their organizations.
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    \1\ A process of comparing a trucking company's expenses, 
operating statistics, and other characteristics (e.g., aggregates, 
compilations, or averages for line item data on Form M (annual 
report) and/or Form QFR (quarterly report)) with those of other 
trucking companies or groups of them for the purpose of evaluating 
how one's company differs from the industry generally, with the end 
of improving one's results.
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    All 16 motor carriers disagreed with the proposed reporting 
requirements, stating that the regulations in 49 CFR 1420 should be 
eliminated. However, the motor carriers stated in their remarks that if 
BTS finds it necessary to continue the reporting requirements, then the 
data and information should focus on the ``financial health of 
individual motor carriers.'' The carriers proposed that the Form M be 
replaced with a postcard that contains only the carrier's name, 
address, census number, gross and net revenues and gross expenses on an 
annual basis. They stated that the abbreviated filing would reduce the 
quantity of the information collected and improve the quality. BTS 
believes that the data and information currently collected for motor 
carriers of property subject to BTS regulations are consistent with the 
requirements of 49 U.S.C. 14123. Given the diversity of the individuals 
and groups who use BTS data, the agency disagrees with the carriers' 
suggestion that the Form M be replaced with a ``postcard'' requesting 
only limited information about the carrier. BTS does not believe a 
significant reduction in this reporting requirement would satisfy the 
statutory requirement or the intentions of Congress. The statute 
requires that, ``at a minimum, such reports shall include balance 
sheets and income statements.'' (See 49 U.S.C. 14123(a).) The agency 
believes that this postcard version of the form could not provide 
meaningful balance sheet and income statement data and thus would fall 
below the minimum requirements of the statute.
    Moreover, the basic financial data contained in balance sheet and 
income statements are generated in the normal course of business by 
most trucking companies, permitting managers to assess the results of 
their operations. In addition, they can form the basis for the income 
tax returns filed by motor carriers. The financial data are often 
provided to bankers, vendors, other State and Federal governmental 
licensing agencies, financial rating agencies like Dun and Bradstreet, 
insurance companies, etc., to assist in the evaluation of a company's 
financial results. Further, other government agencies involved in the 
trucking industry require other Form M information, such as carriers' 
equipment inventory data (number of trucks) and other operational 
statistics (e.g., number of employees).
    Secondly, the commenters asked that the Form QFR be eliminated 
because it's not required by the statute and serves no useful purpose. 
Under the governing legislation in 49 U.S.C. 14123, the agency is 
allowed to collect other reports, including quarterly reports (Form 
QFR). The collection of quarterly

[[Page 66198]]

data is valuable to researchers analyzing and evaluating F&OS data. In 
fact, BTS conducts its own motor carrier industry research on the 
financial health of the industry for DOT decision-makers, and the data 
are considered an integral part of these evaluations.
    The BTS believes that the regulations have not been shown to 
represent a significant burden on motor carriers and are critical to 
many users. The total burden hours reported for these collections are a 
total of 1.8 hours annually per carrier for the four Form QFR 
(Quarterly) reports and 9 hours for the Form M (Annual Report). The 
agency's objective is to continue to work with motor carriers, the 
transportation industry, the financial community, and other public and 
private organizations to collect F&OS data and conduct and facilitate 
useful analysis. The carriers believe that the burden hours are 
underestimated, but do not provide any data that would lead to more 
accurate estimates. Therefore, BTS, without any additional data from 
the carriers to support their position as to the extent of the burden 
or the lack of usefulness of the data, will not implement their 
recommendations at this time.
    However, BTS will continue to seek ways to reduce the burden on the 
motor carrier industry and welcomes any ideas, suggestions, or comments 
from interested parties on ways to improve the reporting process. 
Specifically, BTS is seeking carrier information that includes details 
on the amount of time required to complete both forms (Forms M and 
QFR); the type of person the carrier uses or hires to complete the form 
(i.e., carrier employees, outside accountant, lawyer, etc.); any 
associated costs incurred by the carrier; information on filing methods 
used, including electronic (i.e., CD, internet, etc.), to complete the 
forms; and form retention activities. BTS notes that while the agency 
solicits additional data and clarification from carriers regarding the 
accuracy of BTS burden estimates for these collections, any action to 
amend the regulations would require substantial rulemaking efforts and 
the opportunity for public comment.
    The comments of the U.S. Department of Commerce's Bureau of 
Economic Analysis (BEA) in support of the BTS' data collection program 
stated specifically that they use the program as a ``main data source 
for key components of BEA economic statistics.'' Specifically, they 
reference the BEA's Annual Input-Output Accounts, as well as 
``essential detail or inputs to supplement the information on motor 
carriers collected by the Bureau of the Census. * * *''
    BTS believes that to continue to benefit the public the decision-
making and research activities made possible by the F&OS data 
collection program must continue in a comprehensive and uninterrupted 
manner. Some additional public benefits include: government analyses of 
the business health of the for-hire trucking industry as a basis for 
policies to facilitate an integral part of the nation's transportation 
network; continued widespread dissemination and analysis of industry 
data by trade associations; enabling trucking companies to improve 
their operations by emulating successful companies as they 
``benchmark'' their operating results against industry averages and 
assess what improvements they need to make to better serve the public; 
providing the basis for assessments of profitability by interested 
parties, including insurance companies and labor unions; allowing 
shippers and their organizations to make more informed choices among 
carriers; and supporting the educational process, by providing 
objective data for academic research, teaching, and training (e.g., of 
future trucking company managers). Except for publicly-held companies, 
there are no publicly available individual-carrier-based F&OS other 
than those from the Form M and Form QFR; these trucking company 
statistics provide ``equal access to data'' to benefit the public--
regulators and the regulated have the same data upon which to base 
policy decisions and business planning analyses. In addition, BTS is 
involved in extensive analyses of the motor carrier industry using QFR 
data. Results of these analyses are used within the Department of 
Transportation and will be soon be released and available to the 
public.
    The agency also disagrees that BTS forms are not available for on-
line filing. For more than a year, the agency has placed additional 
resources on BTS' Web site in order to reduce the burden on the 
industry and to encourage more electronic filing. The agency has 
determined that there has been a 30% increase in the number of motor 
carriers filing reports (Form M and Form QFR) using on-line and other 
electronic methods. In addition, the agency has implemented automated 
quality control and edit-check (QC/EC) systems to improve the 
completeness of filed reports and the accuracy of the data. The agency 
expects these efforts to increase the total number of motor carriers 
filing on-line reports.
    CAB is also in support BTS' efforts to collect financial and 
operating statistics for motor carriers. CAB submitted comments that 
were discussed in the agency's second notice published on March 5, 2002 
(67 FR 10043). CAB, in its remarks, requested the agency to include 
additional data items on the Form M. CAB supports BTS' need for the 
data collection program and, as a major user of the data, believes the 
Form M can be completed in less than 9 hours, based on motor carriers 
compiling the same data for corporate and tax purposes. CAB felt the 
burden estimate for the second ICR, Form QFR, was reasonable.
    The CAB provided additional comments to the docket containing 
supplemental information to support its original comments in the 
docket. CAB's suggested that its proposal added no discernible impact 
on the reporting burden. BTS will consider the CAB's comments in future 
rulemakings associated with these information collections.
    As noted above, the BEA is in strong support of the agency's 
continued collection of F&OS data. BEA commented that the data are 
essential to its Annual Input-Output Accounts, which are used to 
prepare estimates of industry output and in understanding the 
infrastructure of the economy.
    Based on the statutory requirements, BTS considered some of the 
comments in the docket beyond the scope of its data collection program 
evaluation. Below is a brief summary of the agency reevaluation for 
each ICR under the appropriate approval number. The estimates that 
appear in the agency's evaluation are identical to those used in the 
ICR submission to OMB for renewal of the BTS Forms.

I

    OMB Approval Number: 2139-0002 (Form QFR).
    Title: Quarterly Report of Class I Motor Carriers of Property.
    Estimated annual burden hours: The Quarterly Report of Class I 
Motor Carriers of Property (Form QFR) imposes 1,800 (27 minutes per 
quarter) total annual burden hours on motor carriers reporting to BTS. 
The figures shown on the information collection supporting statement 
(on file with OMB) for this collection are estimates based on the total 
number of filers (including new entrants and repeat filers), the 
frequency of reporting, and the time needed to compile the information 
and record information on the form (used to comply with the BTS 
regulations in 49 CFR part 1420).
    Reporting: BTS regulations for the Form QFR are applicable to for-
hire (common and contract) carriers that generate $10 million or 
greater in gross annual operating revenues. Motor

[[Page 66199]]

carriers that meet this requirement must report their quarterly F&OS 
data to BTS. The data collected include selected income statement 
information along with information on tonnage, mileage, and number of 
shipments. These data are contained on a single page and are extracted 
from normal trucking management reports and accounting information that 
most carriers have readily available. BTS estimates that approximately 
1,000 respondents each take an estimated 1.8 hours (27 minutes per 
quarter) annually to file quarterly reports with BTS. The total annual 
burden-hour estimate is 1,800 hours (1.8 hours x 1,000). The total 
number of respondents is based on the maximum average number of 
respondents per quarter, including new entrants and repeat filers. New 
entrants are typically motor carriers that are reporting data on the 
Form QFR for the first time. This group of carriers normally requires 
additional time to complete the two-page form with additional 
assistance from BTS as well as other sources. These estimates were 
based in part on estimates contained in the last approved ICR.
    Agency data show that about 30% of the repeat filers report on the 
Form QFR through electronic means (i.e., Internet, disk, or CD) while 
70% use written reports to file using downloadable forms or forms 
provided by BTS. The time needed to meet the reporting requirement for 
this collection is more for the first time filer and less for the 
repeat. As part of its overall estimate, the agency considered 
previously reported figures and recalculated the estimates based on the 
total number of electronic filers.

II

    OMB Approval Number: 2139-0004 (Form M).
    Title: Annual Report of Class I and Class II Motor Carriers of 
Property.
    Estimated annual burden hours: BTS estimates that the Annual Report 
of Class I and Class II Motor Carriers of Property (Form M) ($3 million 
or greater in adjusted operating revenue) imposes 27,000 annual burden 
hours on motor carriers reporting to BTS. The figures shown in the 
supporting statement are estimates based on the total number of filers 
(including new entrants and repeat filers), the frequency of reporting, 
and the time needed to compile the information (including recording the 
information on the form).
    Reporting: BTS regulations for the Form M are applicable to for-
hire (common and contract) carriers that generate $3 million or more 
gross annual operating revenues. These carriers are required to report 
their F&OS data to BTS. The data collected include selected balance 
sheet and income statement data along with information on tonnage, 
mileage, employees, transportation equipment, and other related data. 
BTS records show that in FY 2001 approximately 3,000 motor carriers 
filed a Form M. BTS estimates that each Form M (8 pages) takes about 9 
hours (average) to complete. Approximately 30% of the carriers use 
electronic methods (Internet, CD, or disk), which require less than 9 
hours to file; carriers that do not file on-line may require more time. 
The respondent carriers employ their own staff as well as outside 
accountants, lawyers, and other experts to complete the forms. BTS data 
indicate that although a large number of carriers that file the Form M 
are repeat filers, a substantial number of filers are new entrants, 
which require additional time to complete the Form M. Although the 
agency has seen an increase in new entrants over the years due to 
educational and outreach campaigns to the industry, this increase has 
been offset somewhat by the number of bankruptcies and firms going out 
of business (as shown in recent industry financial reports such as Dun 
and Bradstreet and Standard and Poor's). BTS includes these factors 
when determining estimates of the time required for this information 
collection.
    Estimated Annual Cost of Burden: The combined estimated cost to the 
government is $1.2 million dollars for the Form M and Form QFR. This 
figure includes salary costs based on hours, overhead, printing, and 
payment to contractors. The agency, having received no supporting data 
as to the magnitude of the burden on carriers, employs the following 
estimate of normal costs of motor carriers associated with filing BTS' 
Form M (annual) and Form QFR (quarterly). The number of burden hours is 
9 hours for the Form M and 1.8 hours for the Form QFR. Based on Bureau 
of Labor Statistics (BLS) data, an accountant's cost is $21.56 per hour 
with a fringe benefit percentage of 44.4%. If we apply these dollars to 
the hourly efforts for motor carriers for each form, the result is 
$895,968 (for Form M) and $55,998 (for Form QFR), for a combined total 
of $951,966 for the motor carrier industry.

                                           BTS Burden Hours Estimates
 
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                                      Class II motor carriers (OMB    Class I & II motor carriers (OMB 2139-0002)                      i>2139-0004)
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Number of Respondents...............  1,000.......................  3,000.
Frequency of Responses..............  Quarterly...................  Annual.
Estimated Time Per Carrier..........  1.8 hours (27 minutes per     9 hours.
                                       quarter).
Prior Total Annual Burden Hours.....  1,800.......................  27,000.
Revised Total Annual Burden Hours...  No Change...................  No Change.
Estimated Costs on Motor Carriers...  Change: $55,998 (est).......  Change: $885,968 (est.).
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Data and Sources

    1. Mean hourly wage estimate for accountants: $21.56. (Source: 2000
    National Industry-Specific Occupational Employment and Wage 
Estimates, SIC 421--Trucking and Courier Services, Except Air, 13-2011 
Accountants and Auditors, 09/06/02; http://www.bls.gov/oes/2000/oesi3_421.htm)
    2. Mean hourly earnings for accountants: $21.51. (Source: Table 1: 
Hourly Earnings of Full-time and Weekly and Annual Work Hours, National 
Compensation Survey, 2000, ``Accountants and Auditors,'' BLS Monthly 
Labor Review, March 2002, p. 49.)
    3. Employer costs per hour worked for employee compensation; 
``total compensation'': $20.01 (Source: BLS News, USDL: 02-346, June 
19, 2002.)

Russell B. Capelle, Jr.,
Assistant BTS Director for Motor Carrier Information, U.S. Department 
of Transportation.
[FR Doc. 02-27527 Filed 10-29-02; 8:45 am]
BILLING CODE 4910-FE-P